"We see several areas where Merck's capabilities can accelerate our brands and businesses," chief executive David Taylor said on an analyst call, as P&G announced its third-quarter results.

Across the business, organic sales were up 1% from January to March. But while the beauty division performed well, with 5% organic growth, grooming saw organic sales fall 3% thanks to falling prices, as Gillette continues to face fierce competition from Dollar Shave Club, Harry's and others.